OmiseGO has generated its fair share of controversy in the short time it has been a member of the cryptocurrency market. This digital platform is built on the Omise payment processing company. Omise is similar to PayPal, Skrill, and other online payment platforms. It is based in Southeast Asia. The core development team of OmiseGO includes Vitalik Buterin, the creator of Ethereum. The presence of other notable developers and the overall reputation of Omise has lent this new offering some legitimacy in its early stages, but the coin’s launch was also marred by scammers who sought to prey on unsuspecting investors.
The History of OmiseGO
Southeast Asia payment processor Omise was founded in 2013. It has served the countries of Thailand, Singapore, Japan, and Indonesia. The core development team behind Omise includes many cryptocurrency founders, especially those who have been involved with the Ethereum platform.
While not strictly a digital coin like Bitcoin or Ethereum, OmiseGO has been envisioned as a complete value transfer service. It is relative and important to cryptocurrencies because the platform is built to accommodate both digital currencies and fiat. It operates across various currencies and asset types.
OmiseGo does, however, have its own native currency. It is labeled OMG on the cryptocurrency exchanges. It is dependent on Ethereum as opposed to being based on Ethereum like some other currencies. Essentially, OmiseGO will be an entirely new blockchain. OMG will be its token. Things that can be managed with the OmiseGO platform are fiat tokens, cryptocurrencies, and even loyalty and reward points.
The idea behind the creation of this new blockchain was to solve several critical problems with cryptocurrency technology. Other digital assets like Bitcoin have been plagued with slow settlement times, high fees, a lack of transparency, and, in some cases, compromised security. OmiseGO promises to solve all of those issues and more.
Remittances, or payments for goods and services, is the primary function of Omise and the same will be true of OmiseGO. Remittances are huge in Southeast Asia. Last year the remittance market had a value of 442 billion. What OmiseGO also promises is that users will not need a bank account to cash in or out. This, in itself, makes OmiseGO promising. Thus far, cryptocurrencies have still been somewhat dependent on hard currencies for their existence. Bitcoin has to be purchased with hard cash or earned, and the small number of merchants accepting digital coins means that many people who hold them must convert them to cash before being able to spend them.
The ultimate goal is for OmiseGO to function like Visa or Mastercard. But it will do so in its own specific sphere. The potential for use with online merchants, gaming platforms, and even offline merchants is vast.
OmiseGO is not a mined coin. It is a payment platform that uses its own digital token, the OMG. As such, there is no way to create the coin by mining. Other cryptocurrencies like Bitcoin and Ethereum are mined. This process involves solving complex mathematical problems that require special computer hardware. As a reward for helping maintain the blockchain, which is a core component of mining, miners are given cryptocurrency in return.
Mining has become very difficult for the cryptocurrency hobbyist. The equipment needed can be expensive to maintain and it consumes lots of electricity. What many people are deciding to do is participate in a mining pool like the one offered by Genesis Mining.
Genesis Mining maintains mining farms all across the world in secure locations. They provide affordable mining contracts where users purchase hash power and pool their resources. The rewards of the mining are then shared among those who participated.
OmiseGO Use and Acceptance
In Southeast Asia, the use and acceptance of OmiseGO will surely proceed more rapidly. This is due to the fact that individuals there are already familiar with Omise as a payment processor. The OMG token can also be more easily integrated into the existing platform for use by residents of the region.
In late September of 2017 it was announced that Omise will be partnering with the McDonald’s fast food franchise to facilitate payment for online orders. While there is no word yet whether cryptocurrencies will be accepted at this time, it is likely given the integration of OmiseGO. This experiment should be the first of many. The advantage for retailers who use Omise as a payment processor is that it will be much simpler for them to accept digital currency for their goods and services.
The promise of OmiseGO may be the impact it has on other payment processors around the globe. If other processors like what OmiseGO is doing, they could introduce their own digital tokens in the very near future.
There is still value to be had in procuring the OMG token. It can be held as an investment. OmiseGO is already ranking very high as a traded currency on many cryptocurrency exchanges. Because of its youth and the unfamiliarity of many with the platform, be prepared for this currency to be very volatile. Cryptocurrency investing carries an inherent risk and is recommended for those who understand the markets and have some investing experience.